Things You Must Know About Car Insurance

Renewing car insurance is one of the things car owners do annually, but do you know how car insurance works in Malaysia?

Here are the things you must know about car insurance:


Different types of car insurance available in Malaysia:


  • Third party cover


This is the most basic car insurance, and it is compulsory for all car owners in Malaysia to have third party cover in their insurance package.


This policy protects car owners from having to pay the damages of another vehicle due to an accident.



  • Third party cover, fire and theft


Other than third party cover, this policy provides coverage to a car owner’s vehicle such as losses incurred due to fire or theft. Needless to mention, this policy is more expensive than the third party cover.



  • Comprehensive cover


This policy offers the most enhanced coverage among the other policies, and therefore it’s most expensive. It covers third party, fire and theft, plus damage to your vehicle in the event of an accident.


A comprehensive cover can be customized as you can get additional coverage based on your requirements by paying more.


car insurance

Factors that determine the premium of a car insurance policy

Many factors determine your car insurance premium, especially in comprehensive policies. Some of the factors are also identified as ‘risk factors’:



  • Your age


Crash rates are higher for all drives below age 26; therefore, you’re considered a riskier driver if you’re below 26 years or above 69 years. Hence, you’ll be charged more for a higher premium.



  • Age of the vehicle


If your vehicle is more than ten years old, it’s considered more accident-prone — something that’ll increase the price of your insurance premium.


  • Location

In general, vandalism, crashes and theft rates are higher in big cities; urban drivers need to pay a higher insurance premium than those who live in small towns.


  • Vehicle

Your vehicle’s price is directly proportional to your vehicle’s insurance premium. A vehicle with more powerful engines are considered riskier; therefore incur higher premiums. Interestingly, some well-known cars are considered ‘theft-prone’ and incur higher insurance premiums.


Insurance premiums for rebuilt vehicles also tend to be more costly. Cars that have anti-theft systems and enhanced braking systems help to increase your vehicle’s safety. As a result, insurance premiums are cheaper for them.




Not claiming insurance during the insurance coverage term is considered reward-worthy, which means you’re a safe driver. Hence, insurance companies extend NCD to car owners upon their renewal.


You’re entitled to 25% NCD on your first insurance premium renewal, 30% in the second, 38.33% in third, 45% in fourth and up to 55% in your fifth renewal.


With more and more cars on the road, we know for a fact that accidents are unavoidable!


AIG offers an extensive range of products and services including car insurance, click here to learn more  


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Full Insurance Services by AIG Malaysia

Being on the list of pioneers of insurance services in Malaysia for more than 60 years, AIG serves the citizen by supplying quality delivery by way of insurance and risk management solutions. As one of the insurance company in Malaysia, AIG Malaysia provides insurances services like car insurance, travel insurance, business insurance, and medical insurance. After the day the building blocks is set in 1953, AIG’s consistent development caused a steady increase in their own individual network of agents, brokers, and scheme, with now at least 15 offices opened across the country.

AIG Malaysia: 360° Insurance Plan Plan

Your life or business not insured up against the uncertain future are generally frightening for the people and businesses. To give both groups of customers a secure feeling, AIG Malaysia has formulated distinct types of services which can satisfy their desires.

Having a property registered under one’s name could, in fact, be terrifying without insurance protection, mainly because it will cause a tremendous loss when unwanted happens. Hence, the Malaysian government has made it obligatory to obtain insurance whenever individuals get a new car and a house. Within the insurer’s side like AIG, they’re doing their portion by making sure the customers are fully covered from various risks which happen to be commonly associated with cars and properties.

insurance company in malaysia, car insurance

Nevertheless, there is still the primary aspect everyone should prioritize upon. As AIG Malaysia proactively educates the public on the incredible importance of medical insurance policies, it can be pleasing in order to witness a stable improvement in degrees of health-related insurance purchase every succeeding year on account of their tireless effort.

The local businesses’ expansion to foreign markets combined with very affordable transportation has produced frequent travel the most recent standard. It has led to the growing demand for insurance to cover individuals while making each of those domestic and foreign trips. To match the needs, AIG Malaysia has offered an insurance plan with complete coverage to the customers.

For corporations, AIG has got a versatile risk management policy that assists them to protect their business from unforeseeable loss. They are simply at liberty to join any variety of insurance, for example, property insurance, manufacturing related insurance, insurance linked with financial lines, or maybe group employee benefits insurance as part of their employees’ medical & health benefit with AIG.

AIG grasps well that corporate clients in manufacturing, education, banks, import & export, construction, and the aviation market has different insurance plans needs; and it is simply the sole goal of providing such standard of flexibility. Also, it also gives credence to require smaller scale businesses and aids them by providing SME Package to eligible companies.

Hence, customers who are interested take a look at about AIG Malaysia’s insurance and risk management offerings can go to their webpage to receive information about nearby agents to set up a private meeting. To customers who prefer a straight-forward approach, they can simply ask for a quote on the website and supply relevant information to ensure assessment can be made.

Being one of the main companies which embrace technology in its operation, AIG Malaysia has partnered up with Lazada Malaysia in order to make online insurance purchase far easier. The infusion of e-commerce on their strategy will, in the end, profit the customers as they possibly can easily purchase their preferred insurance plan while having it activated within 72 hours after undergoing a few quick registration steps. Get more information now at